Data Supportive of Fed Funds Hike in December

U.S. Review

Data Supportive of Fed Funds Hike in December

• Three of the leading U.S. inflation indicators, the consumer price index, the producer price index and the import price index, collectively showed a firming of inflation in October.
• Industrial production growth surged in October, but the gain was overstated by rebound effects from Hurricanes Harvey and Irma.
• Retail sales rose 0.2 percent in October. Over the past year, sales are up 4.6 percent amid strength in building supplies and non-store retailers.

Global Review

Steady Growth in the Global Economy

• The global economy has continued to show signs of steady economic growth even though growth varies across countries. Case in point was this week’s release of Russia’s economic performance during the third quarter of the year, which came in lower than market expectations, up only 1.8 percent on a year-earlier basis.
• Meanwhile, the Eurozone reported that industrial production was down 0.6 percent in September on a sequential basis after a strong result in August, up 1.4 percent sequentially.

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